Association of Realtors of Ukraine to propose alternative to draft law on realtors' operations if economy ministry ignores association's remarks

Kyiv, April 17 (Interfax-Ukraine) – The Association of Realtors of Ukraine is planning to propose an alternative draft law on the regulation of realtors' operations to that drafted by the Economic Development and Trade Ministry if the ministry ignores the association's proposals, President of the Association of Realtors of Ukraine, Serhiy Zlyden, has said.

"First, the [report] is aimed at influencing the Economic Development and Trade Ministry, so that they listen to us, and secondly, this is a much better draft law [that has been drawn up by the association] if a law on self-regulation [of non-governmental organizations] is to be passed first," he said at a press conference at Interfax-Ukraine on Wednesday.

He said that the association supports the idea that a law on self-regulating nongovernmental organizations, which will define relations, in particular, of the state and realtors, should be passed first.

Zlyden said that the association is taking part in work on the draft law on specifics of doing realty business drawn by the Economic Development and Trade Ministry in order to execute orders of the Ukrainian cabinet and president, although the remarks of the association are being taken into account only partially. As a whole, the association assesses the document negatively.

"The retaining of a requirement on the limiting tariff of fees for realtors' services at 3% of the property value is not in line with the Constitution and Ukrainian law," reads an address of the association to Ukrainian Prime Minister Mykola Azarov presented at the press conference.

In addition, the association is criticizing draft law No. 8781 submitted by MP Ihor Prasolov (the Regions Party faction).

"We believe that if the above-mentioned draft law were passed, large damage to the Ukrainian realtors' market would be done, and a way to corruption and the seizures of all administrative and financial flows in realtors' society by a group of persons from the Realtors' Chamber of Ukraine would be opened," reads a resolution of the association's council presented to reporters.

Zlyden said that the two mentioned bills contain requirements on the external regulation of realtors' operations: in the first case – by the State Property Fund of Ukraine, and in the second case – by the Realtors' Chamber of Ukraine, which is unacceptable under conditions of free market relations.

He also said that the association believes that it is better to regulate the realtors' service market only on the basis of a draft law on self-regulating nongovernmental organizations.

As reported, some nongovernmental organizations of realtors have asked the leadership of Ukraine to back a draft law on realtors' operations authored by Prasolov.

The address was signed by the heads of the Union of Realtors of Ukraine, the Realtors' Chamber of Ukraine, FIABCI-Ukraine, the Union of Advisors, the Realtors' Chamber in Ternopil, Association of Professional Managers, the Realtors' Chamber in Crimea, Zaporizhia Regional Association of Realtors, Donetsk Regional Realtors' Chamber, the Realtors' Chamber in Lviv and the Realtors' Chamber in Zhytomyr.

Earlier, the head of the national council of the Realtors' Chamber of Ukraine, Oleksandr Bondarenko, said that when the Economic Development and Trade Ministry drew up a draft law on specifics of the realtors' business, they completely changed the concept proposed by Prasolov in a draft law registered in the parliament on July 7, 2011.

In June 2007 the Ukrainian parliament did not support draft law No. 3499 on realtors' operations, the major goal of which was to legislatively regulate realtors' activity on Ukraine's real estate market. The bill was authored by Prasolov.

On July 7, 2011, Prasolov registered draft law No. 8781 on realtors' operations, which was mainly focused on the protection of the rights of realty service consumers.

Ukrainian President Viktor Yanukovych in November 2011 ordered Ukrainian Premier Mykola Azarov by January 30, 2012 to submit to parliament a draft law on realtors' operations. The Economic Development and Trade Ministry drew up a draft law on specifics of doing realtors' operations, which has not been registered in parliament. The ministry proposed to legislate realtor activities, providing the State Property Fund (SPF) with the function of issuing certificates to real estate companies. Under the bill, realtors have to have a university degree, obtain basic training or take an internship at a realtor agency for a year, pass a qualification exam, receive a realtor certificate and register in the state register of realtors. The bill also foresees that the SPF should maintain the state register of realtors, which includes data on individuals and legal entities that have certificates.

The document also foresees the possibility of realtors creating self-regulatory organizations, which should have at least 250 realtors, 90% of whom should perform real estate activities.

The Association of Realtors of Ukraine was established in 1995. It unites representatives from 25 regions in 32 cities of Ukraine.